Budget deficit drops to 737 billion MNT after 25 percent increase in tax revenue
The state budget deficit decreased to 737.9 billion MNT as of the first nine months of 2017, supplemented by a 25 percent increase in tax revenue, reported the National Statistical Office (NSO) this week.
The total revenue of the state budget was five trillion MNT while expenditure exceeded 5.8 trillion MNT. As a result, fiscal deficit currently stands at 737.9 billion MNT.
While still high, economists note the significant decrease in the budget deficit. This year’s deficit is a 1.3 trillion MNT decrease compared to the deficit in the first nine months of 2016.
A one trillion MNT increase in revenue and 291.4 billion MNT decrease in expenditure were the main factors for the drastic decrease, NSO noted.
A 25 percent increase in tax revenue resulted in the total revenue of tax into the state budget to increase to 4.4 trillion MNT.
Tax revenue accounts for 80 percent of the total revenue of the state budget, while non-tax revenues made up 11.7 percent, revenue from sovereign funds account for 4.6 percent, and stabilizing funds account for 3.7 percent.